What are the crypto currencies anchored into?
USD as world reserve currency coming to an end?
- Thread starter kmiklas
- Start date
What are the crypto currencies anchored into?
I've always been wary of idealists, especially when they concern large numbers of people. No grounding, all possibilities.
Anyone with a modicum of grounding would realize that 1. Because it appears empty doesn't mean it doesn't belong to someone 2. If it doesn't belong to anyone, it will have to be protected. 3. Protection means high cost which means taxes 4. Taxing means managing funds through a hopefully elected body... so in the end we have gov, tax, army and home, all on a rusting vessel on the sea. Nice.
TL, DR. So what are the crypto currencies anchored to?
Here is a brief, visual summary that shows the crypto ship being anchored to some tethers.
View attachment 267734
So the Minnow is going to get lost as that tiny ship is tossed. So sad.
Your concern is that they are printing too much money, right? And not they they shouldn't print money at all? Is this correct?
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"Relinquishing" is not the right word here. Reserve currency status is something that can be voluntarily relinquished, but that word implies we are voluntarily relinquishing the Dollar's reserve status. That is not the case. Reserve currency status has to be earned and agreed to internationally. We are not relinquishing voluntarily. We would like the dollar to maintain its reserve status, as it is on balance an advantage to the U.S. But our currency can not maintain its reserve status without acceptance of its status among our trading partners. Because the advanced, industrialized nations dominate world trade, other countries too, as a practical matter, have also adopted the dollar as a reserve currency. That is changing however. We can't do much about that. And even our main trading partners may prefer a more egalitarian system of pricing.